'Most of the growth is to the east': Springfield gains jobs, but unemployment rate stays well above Worcester and Boston

SPRINGFIELD — Unemployment remained higher last month in Springfield than in Massachusetts' two other major cities, Worcester and Boston.

Springfield had an unemployment rate of 6.3 percent in November, according to statistics released Tuesday by the Massachusetts Executive Office of Labor and Workforce Development and by the federal Bureau of Labor Statistics.

By contrast, Worcester had an unemployment rate of 3.7 percent, and Boston was lower still at 3 percent.

Look up unemployment by city, town or region

This map created by the Massachusetts Executive Office of Labor and Workforce Development shows unemployment numbers by geography. It can show numbers by town and city, by Workforce Development Area or by statistical area, "MA NECTA" on the chart.

Regional numbers closer

As a region, the Springfield area is just a few tenths of a percentage point higher than the statewide average of 3.6 percent at 3.9 percent. Worcester is just a shade lower at 3.5 percent.

The Massachusetts unemployment rate in November was half a percentage point lower than the national rate of 4.1 percent reported by the Bureau of Labor Statistics.

Greater Springfield added 1,600 jobs during the month, a growth of 0.5 percent, and 8,000 jobs over the past 12 months, a change of 2.4 percent.

Worcester and its surrounding towns added 1,200 jobs in November for 0.4 percent growth. The area is up 3,700 jobs over the past 12 months for 1.3 percent growth.

Boston added 3,000 jobs in November for 0.1 percent growth. The state capital is up 60,300 jobs from December 2016 to November 2017 for 2.2 percent growth.

biz 0703 robert nakosteen benchmarks isenberg umass photo.jpg

Robert A. Nakosteen, professor at the Isneberg School of Management at the University of Massachusetts Amherst. (Photo Provided)

"Most of the growth is to the east."

“Springfield is adding jobs, 8,000 is a good number,” said Robert A. Nakosteen, professor of operations and information management at the University of Massachusetts Isenberg School of Management. “But it pales next to 60,000 (jobs added in Boston). The state is doing awfully well. But of course, most of the growth is to the east. “

That’s because high-tech businesses on the forefront of biology, computing and medicine are in Boston or close to it, he said. Those businesses are growing.

The economy in Western Massachusetts is undergirded by giants like Baystate Health, MassMutual and the University of Massachusetts Amherst. All are great, he said, “but they are not growing."

But that doesn’t mean Springfield should be worried. He expects job creation to pick up, citing MGM Springfield, which is scheduled to open in September, as one example.

“There is nothing really negative going on right now,” he said.

Nakosteen said he’s surprised Worcester isn’t growing faster. Usually the Central Massachusetts economy benefits more from its proximity to Boston.

He and his colleagues at MassBenchmarks, a study of the state’s economy, predict the state’s economy will grow by about 3 percent in 2018. That’s not jobs, but GDP. But that growth in GDP will lead to continued job growth.

He sees job growth to continue following the current pattern: solid in Western Massachusetts, but with Boston clearly leading the pack. If anything, a lack of qualified employees might be the thing that holds back hiring, he said.

Statewide unemployment

Statewide unemployment fell to 3.6 percent in November, and the state added a net 6,700 jobs.

It was the fourth month in a row that unemployment has fallen, according to statistics released Thursday by the state Executive Office of Labor and Workforce Development and the U.S. Bureau of Labor Statistics.

Statewide unemployment numbers are adjusted for seasonal changes in the economy. That's why it is important to look at employment numbers from a year ago and not month-to-month changes.

Jobs numbers are also different than jobless numbers. Jobs numbers come from surveys of employers and often don't include startups that are not included in the list of workplaces surveyed.

Unemployment numbers come from a survey of households.

The statewide unemployment rate is higher, at 7.5 percent, when those who are working part time but would rather work full time and those who have stopped looking for work are counted. (That rate is not available for cities and towns.)